Wealth Management 101

Wealth management

Perks Wealth management is a discipline where professionals provide financial advice to a variety of clients. These clients range from high-net-worth individuals to ultra-high-net-worth individuals. They may be seeking to invest in a wide range of securities, or to diversify their portfolio. There are many aspects of wealth management to consider, from asset allocation to tax planning.

Asset allocation

This authoritative resource brings together contemporary perspectives on asset allocation and practical implementation. Its unique approach enables practitioners to make sound decisions about the best combination of assets for achieving the desired goals. It is a must-have resource for any practitioner of wealth management. It covers the basics and advanced topics in asset allocation.

The traditional asset allocation approach has many limitations. For instance, asset managers rarely incorporate human capital, expenditure goals, and investment time horizon into their plans. Most practitioners also only consider portfolio-related risks, ignoring client-specific risk factors.


The concept of diversification in wealth management can be extremely beneficial for managing an investment portfolio. It is the strategy of investing in several different types of investments, which will allow you to minimize unsystematic risk and maximize returns. Diversification can help you manage risk and maximize returns, but it cannot completely eliminate market risk.

Diversification in asset class involves choosing a mix of stocks and bonds. Stocks typically outperform bonds over the long term. Therefore, investing more in stocks will increase portfolio growth while decreasing the volatility of your portfolio. Conversely, investing less in stocks will slow portfolio growth. Typically, a retirement portfolio will allocate 70 percent or more of its assets to stocks.


Rebalancing your portfolio annually or quarterly is a good way to make sure your money is doing what it’s supposed to and not taking on more risk than you should be. However, rebalancing may have tax implications, so it’s important to keep accurate records and consult a tax professional.

One of the most common areas that may need to be rebalanced is retirement account allocations. As you approach retirement age, you may want to increase your allocation to fixed-income investments. This helps keep the overall value of your portfolio up.

Tax planning

Tax planning is a key aspect of wealth management. It involves making informed decisions about how to manage your money so that you don’t end up owing the government too much money. A financial advisor can guide you through the process of identifying and reducing your tax liability. They will help you reduce your taxable income by minimizing your expenses and taking advantage of tax credits and rates.

Tax planning strategies are critical for maximizing the wealth of your family. The amount of federal, state, and local taxes you pay can greatly affect your income, estate, and capital gains. This makes it imperative to plan and implement strategies to minimize your tax liability at every step of your financial life. The good news is that there are numerous tax-efficient options available to reduce your tax liability year-round. For example, a tax-managed equity portfolio may allow you to realize gains at opportune times and minimize your taxes over the long term.

Estate planning

Estate planning is an important component of wealth management. It helps you protect your assets and lay the foundation for generational wealth building. It is also an excellent way to make sure that your loved ones receive your assets after your death. A well-planned estate plan prevents your assets from going to probate court, where a judge will decide what to do with them. It ensures that your family’s future is secure and your favourite causes are supported.

Creating an estate plan is important for all families, not just those with a lot of assets. Having a plan in place can prevent your loved ones from paying unnecessary taxes when you die. It can also help you avoid having to pay large amounts of taxes if your estate is large.


The emergence of robo-advisors for wealth management shows that digitalisation has become a major trend across the financial services industry. It is already transforming business processes, everyday activities, and even the way people live their lives. By adopting this technology, wealth management companies can reach a broader audience and improve their services.

Robo-advisors for wealth managed by a machine use artificial intelligence to analyze your financial data and make smart investment recommendations. They are also able to track your account activity and apply the most effective advice automatically. Among other benefits, they help forecast your net worth and look for hidden fees and cash drags.

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